Union Properties posts Q3 loss

UPDATE 1: Dubai's third largest developer posts lost of $41.3m, compared to $61m profit in Q3 2008.
Union Properties posts Q3 loss
By Andy Sambidge
Sun 15 Nov 2009 08:16 AM

Dubai's
Union Properties

, the emirate's third largest developer, on Sunday posted a loss in the third quarter as it reported an increase in costs.

The net loss was AED152.3 million ($41.3m), compared with a profit of AED224.7 million ($61m) in the same period in 2008, according to a company statement posted on the Dubai bourse website.

The company booked AED125 million against contracting losses in the third quarter, citing the impact of the financial crisis on the real estate and the construction sectors in the UAE.

"This could potentially affect the ability of the group's contracting related activities to recover fully certain receivables on work done and certified and work done yet to be certified," it said in the statement.

Company revenue for the nine months to the end of September reached AED3,206 million, a growth of 21 percent over the same period last year.

Q3 revenues reached AED1,343 million, the company added, growing 70 percent over Q3 2008 and 4 percent over Q2 2009.

The growth in revenues was mainly driven by the revenue from the handover of 1,150 completed units in Motor City up to the end of September.

In February,
Union

had said it was suspending construction of the $460m theme park, part of the multi-billion dollar MotorCity project in Dubai.

Union

posted a second-quarter loss of $62m.

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